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Online ‘Barter’ is illegal and violates tax laws, said DTI Sec. Ramon Lopez who just heard the term
By Jhoemz Vercide 15 Jul 2020 704

Online selling has become a thing these past few months due to the pandemic, and with Filipino’s resourcefulness and creativity, many have found a way to make it more ‘fun’ and meaningful at the same time through online, which is known as ‘online barter-trading’.

Barter or the primitive system of exchanging goods without involving money back in the Middle Ages, has been a source of inspiration to the people, in fact, one of the first places which have been practicing the system is Bacolod.

The people have come up with the idea and decided to put it online, they have created a Facebook group named ‘Bacolod Barter Community’ that was founded just this May with more than 200,000 Facebook users. The members consensually exchange goods by merely posting and commenting on the items without the involvement of money.

 

Screenshot from Bacolod Barter Community / Facebook

 

The said type of online transaction has been receiving good impressions from the public since it has started not until it caught the eye of the Department of Trade and Industry (DTI) telling everyone that it’s illegal and violates tax laws.

During the Laging Handa public briefing on July 14, Trade Secretary Ramon Lopez said that while barter-trading is allowed in “very limited” areas in Mindanao, it is not legal in the rest of the country.

“Ang barter trade ho ay allowed po iyan doon po sa mga limited places sa Mindanao dahil po sa nature po ng … iyong mga lugar doon na kailangan ma-improve iyong livelihood, iyong mga hanapbuhay po lalo na sa tabi ng dagat,” the Trade chief said.

The Cabinet official said barter-trading is only allowed in Sulu and Tawi-Tawi provinces pursuant to an executive order issued by the President, particularly Executive Order No. 64 signed in 2018.

 “Pero po sa ibang lugar ay hindi po allowed iyong barter trade. At saka kailangan ho, ano pa, iyong regular transaction tayo diyan at saka dapat ho ay may tax na binabayaran,” Lopez added. “Bawal nga po so – at saka nalalabag nila iyong tax law diyan – anyway, ipapahanap po natin iyon dahil illegal po iyong activity,” Lopez said.

Earlier today, he clarified that barter is still allowed if it’s a personal transaction.

With everyone who has been utilizing the online world for different purposes this pandemic period is such a relief knowing that life could still go on even with a limited movement, but putting such restrictions and not in favor of the welfare of many can be too much.

What are your thoughts on this issue peeps?

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